Azorra has closed an offering of $550 million of senior unsecured notes and entered into a $464 million Term Loan B facility.
The lessor issued $550 million 7.750% senior unsecured notes due 2030. The notes will be guaranteed by Azorra and certain of its subsidiaries. Proceeds from the notes will be used to repay existing debt and for general corporate purpose, which may include financing the acquisition of new aircraft deliveries.
“These inaugural Term Loan B and unsecured note issuances mark a significant milestone in Azorra's journey towards a balance sheet financing model,” said John Evans, CEO and founder of Azorra. “The success of these issuances increases our cashflows, liquidity and operational flexibility. We extend our heartfelt gratitude to all who participated. Together, we are building a stronger future for our company.”
Azorra has also entered into a Term Loan B facility in an aggregate principal amount of $464 million, with the term loan maturing in October 2029.
The term loan will bear interest at a variable rate per annum at Azorra’s option of either three-month SOFR - with a floor of 0.0% - plus 350 basis points, or an alternative base rate plus 250 basis points. The term loan will be secured by a 28-asset portfolio consisting of 12 A220-300s, 6 E195-E2s, 2 E190-E2s, 6 E195-E1s, one E170-E1 and one PW1900 engine.
Citibank served as sole structuring agent and global coordinator for the term loan B facility, and Citibank, BNP Paribas, Natixis, New York Branch, Fifth Third Bank and Société Générale acted as joint lead arrangers and joint bookrunners. Deutsche Bank Securities, PNC Bank, BofA Securities, MUFG Bank and Royal Bank of Canada were co-arrangers.
The Notes are rated by Moody's (B2), S&P Global Ratings (BB-) and Fitch Ratings (and BB-). The rating agencies also provided initial corporate ratings for Azorra of BB-, BB- and Ba3, respectively.
The rating agencies also provided Terminal B ratings for Azorra of BB, BB, and Ba2.